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New changes to the threshold for self-employed tax returns have been laid out by the government, which will see the minimum limit for filing a tax return increase from £1,000 to £3,000, among other proposals.
In a speech on Tuesday afternoon marking the 20th anniversary of HM Revenue and Customs (HMRC), tax minister James Murray said the changes are slated to kick in during this parliament.
It will mean around 300,000 people will no longer have to file a tax return for side hustles like creating content online, dog walking or tutoring, the government said.
An estimated 90,000 of those who previously filed tax returns have had no tax to pay and will have no reason to report their trading income to HMRC in the future.
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Others will be able to pay any tax they owe through a new simple online service.
Improving customer services
HMRC is also set to trial new tools to help improve customer service.
In line with the practices of banks and other private sector businesses, HMRC has begun trialling a system where customers can use their voice as their password, to pass security checks faster and more securely.
Voice biometrics are designed to strengthen security, safeguard customer data and reduce call times. Customers’ voice recordings are converted into encrypted biometric data, a voice print, and stored securely in a data centre.
Other changes: antiques, US-UK trade rules and phoenixism
Changes are also due for the "temporary admission" customs procedure. These will aim to make tax relief for temporary imports easier to use for a range of sectors.
It will include art and antiques often showcased in exhibitions across the UK.
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Meanwhile, a digital pilot in collaboration with the US, will try out ways to speed up processes for American and British businesses. This will include improvements to communication in order to make it easier and quicker for businesses to request trade benefits from each country.
Following an announcement in the autumn budget to tackle phoenixism – where company directors go insolvent to avoid tax – a new reward scheme is set to be introduced to encourage informants to come forward to HMRC about tax fraud.
Informants could take home a significant amount of compensation, equal to a proportion of the tax take, ensuring that the scheme raises more money than it costs.
Work is ongoing within the government regarding what percentage this could be. Further details will be set out in due course, the Treasury said.